Q1 2026 Protocol Rewards
Allocation
This proposal defines the allocation of Q1 2026 protocol fee revenue generated by the Ostium platform. The objective is to incentivize long-term liquidity provision, fund ongoing protocol development, and grow the DAO treasury in a balanced and sustainable manner.
If passed, a total of $1,240,000 USDC in verified Q1 2026 protocol fees will be distributed according to the allocations outlined below, beginning April 3, 2026.
This marks the first formal fee distribution proposal in Ostium's governance history and establishes a precedent for transparent, community-governed treasury management.
| Recipient | Allocation | Amount (USDC) | Distribution |
|---|---|---|---|
| Vault Liquidity Providers Pro-rata share based on average TVL during Q1 2026 | 70% | $868,000 | |
| DAO Treasury Held in multi-sig for future governance proposals | 20% | $248,000 | |
| Development Fund Core protocol development and security audits | 10% | $124,000 |
Ostium's growth in Q1 2026 has generated significant protocol revenue for the first time at this scale. With $38B+ in cumulative trade volume and over 24,000 active traders, the protocol has reached a critical juncture where thoughtful fee distribution is essential for long-term sustainability.
The proposal prioritizes vault liquidity providers, who are fundamental to the protocol's ability to offer deep liquidity and competitive pricing across all listed markets. By directing 70% of fees to LPs, we directly incentivize the capital formation needed for continued growth and tighter spreads.
The DAO treasury allocation creates a strategic reserve for future proposals—including liquidity mining campaigns, market expansions, and ecosystem partnerships—without requiring additional token inflation. Key goals:
- Align incentives between the protocol and its liquidity providers
- Grow the DAO treasury for sustainable, community-directed ecosystem development
- Fund security audits and core protocol improvements that serve all users
- Establish a transparent, on-chain precedent for future quarterly fee distributions
Upon proposal passing (threshold: >50% For votes, quorum of 1,000,000 OST met), the following on-chain actions will be executed via the Ostium DAO multi-sig (3-of-5 signers required):
- LP Distribution: 868,000 USDC transferred to the Vault contract's
distributeRewards()function, allocated pro-rata by average Q1 TVL snapshot taken at block #319,200,000. - Treasury Transfer: 248,000 USDC transferred to the DAO treasury multi-sig at
0x3a9f...8c71on Arbitrum. - Dev Fund Transfer: 124,000 USDC transferred to the development team multi-sig at
0xe2b4...1d53on Arbitrum.
All transfers will be executed within 48 hours of proposal finalization on April 1, 2026. A full transaction report will be published in the Ostium governance forum and pinned to Discord.
Connect your wallet to cast your vote.
OST balance required at snapshot block.